Facing a severe cash crunch, Bitcoin miner Sphere 3D quietly prepares to dilute its shareholders by a staggering 50%

Bitcoin miner Sphere 3D has up to $10.3 million of amended at-the-market stock-sale capacity for working capital, while its standing policy also permits mined Bitcoin sales for working capital or growth.

At the assumed $2.35 share price in its July 31 prospectus supplement, full use of the facility would add 4,382,978 common shares and expand the company’s basic share count by 50.9%.

That sale would lift basic shares outstanding from 8,619,150 to 13,002,128. The amended facility replaced Sphere 3D’s prior ATM prospectus. It is authorization, not a completed issuance: A.G.P. and Maxim are not required to sell a minimum amount, and the number of shares issued will depend on actual market prices.

The 4,382,978 new shares would represent about 33.7% of the resulting basic total, leaving shares already outstanding at about 66.3%. However, the filing’s base excludes stock options, restricted stock units and restricted stock awards, preferred-share conversion shares, warrants and shares reserved for future equity awards.

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